The JV company will have an initial authorised share capital of RM50 million divided into 50 million ordinary shares of RM1 each. Upon its incorporation it will have a paid-up capital of RM35.294 million.

Ahmad Ramli said so far, RM58 million has been invested in the plant that would produce double-base propellants for locally-used artillery and rockets for the time being.

"Subsequently we will market the products regionally," he told reporters after the signing ceremony between both parties here today.

Facing growing delays in the parallel construction of three Air Warfare Destroyers (AWD) and two Landing Helicopter Dock Ships (LHD), the Australian Ministry of defense and program manager AWD Alliance decided to redistribute the construction work among three Australian shipyards currently involved in the program, and transfer part of the work to the Navantia shipyard in Spain. This move will relieve the pressure from the BAE Systems Shipyard in Melbourne. The new plan will enable the consortium to minimize delay of the completion of the first ship by up to 12 months, and of all three AWDs by up to 12 months.The recent decision follows the relocation of nine steel blocks constructions, from BAE Systems’ Melbourne to the Forgacs Shipyard in Newcastle, Australia. According to Australian Minister for Defence Stephen Smith and the Minister for Defence Materiel Jason Clare announcing the plan today, the construction of 18 steel blocks related to the first two ships will reduce the schedule risk to both this project and to the two LHD ships project currently underway in Australia. Up to 13 steel blocks will be reallocated among the three Australian shipyards in Adelaide, Melbourne and Newcastle. Seven blocks will be for advanced fit out and six for construction. Up to five steel blocks will be reallocated to Navantia in Ferrol, Spain. A decision on the reallocation of blocks on the third AWD will be made later in the project.

The AWD program encountered engineering and construction delays, related to some of the hull blocks. It seems that the delays resulted in the Melbourne BAE Systems shipyard, stretched over two major projects at the same time – constructing steel blocks for the Air Warfare Destroyers and 14 steel blocks for the superstructure of the two 27,500 ton LHD Ships, due to delivery in 2014 and 2015. According to the AWD Alliance, the industry consortium managing the program, these obstacles could push back the delivery of the first AWD ship by two years. Under the new plan, BAE will complete the structural steel and initial outfitting work on the seven steel blocks for the AWD, it is currently working on, as well as all its work on the 14 blocks for the superstructure of the Landing Helicopter Dock Ships and the integration work. The LHD ships were due to be delivered from December 2014.

The AWD Project is an important element of Force 2030. The AWD is based on Navantia’s F-100 design, similar to the AEGIS equipped vessels operated by the Spanish Navy. According to the Australian Defense, when complete, the AWD will be one of the more capable types of warship of its size in the world. Overall, the AWD program involves the construction of 90 separate steel blocks, being built at three Australian shipyards – in Adelaide (ASC), Melbourne (BAE Systems) and Newcastle (Forgacs). Three additional sonar block assemblies are being built in Spain and the United Kingdom. The total cost of the program is estimated at A$8 billion. The AWD Alliance consists of ASC, the Defence Materiel Organisation (DMO) and Raytheon.

THE federal opposition is set to grill the government and Defence today over their plans for through-life maintenance of the troubled Collins-class submarine fleet, claiming the boats' costs will rise 36 per cent over the next decade.

Defence Minister Stephen Smith had failed to advance a maintenance support contract recommended more than two years ago by the Auditor-General, the opposition's defence spokesman, David Johnston, said yesterday ahead of Senate estimates hearings.

"The Gillard government is reluctant to face any real scrutiny and no portfolio illustrates this more starkly than the Defence Minister and his department," Mr Johnston told The Australian.

He queried the reason for delays from Mr Smith in replying to questions on notice related to outstanding defence concerns -- many of the questions asked more than two months ago.

A reply received last week to queries about ongoing costs for the Collins-class submarines included a reference indicating an answer had been prepared earlier this month.

That begged the question of whether the minister or his department delayed the reply to minimise the level of scrutiny they would face before Senate estimates, Mr Johnston said.

Defence estimates hearings begin today and the opposition is expected to focus on delays to implement a through-life support plan for the submarine fleet.

In 2009 the Auditor-General reported on the management of the Collins-class sustainment but two years later no contract had been negotiated despite the two principal parties being wholly government-owned, Mr Johnston said, referring to the Australian Submarine Corporation and Defence Materiel Corporation, responsible for military acquisitions and maintenance.

In reply to Mr Johnston's questions, the government said it was expecting to finalise the submarine maintenance contract "by the middle of 2011".

He said Mr Smith's office was notorious for failing to answer either questions on notice from the opposition or questions arising out of Senate estimates.

"There are currently 53 outstanding questions asked more than two months ago relating to submarines and the Strategic Reform Program, and 75 questions asked following the last round of Senate estimates in February," Mr Johnston said.

"These questions relate to a number of acquisition programs that have -- in defence terms -- been realigned, rescheduled or re-phased by defence bureaucrats, and are important to show the direction in which defence is heading."

A promised improvement for a more prompt response to questions from the opposition had not occurred, he added.

As of last night, Mr Smith's office had not responded to The Australian's request for comment.

After successful sea- and acceptance trials, the secondGepard 3.9 class ship built byZelenodolsk Shipyard was sent to the customer.

The ship was loaded aboard the special-purpose transport vessel Eide Transporter on May 25 and shipped to Vietnam on May 26. Estimated duration of the cruise is 65 days.

As was earlier reported, all mechanisms, systems, and armament of the ship conform to the contract specifications and technical design.

The ship has improved navigability, maneuverability, dynamism, steering capabilities, and longer cruising range. The interior design was also changed with regard to the orderer's wishes expressed after the first frigate's delivery. According to experts, the second ship is more serviceable and easier to operate.(ZDShip)

GEMAS: The Royal Malaysian Air Force base in Sungai Besi, Kuala Lumpur, will be relocated to Sendayan in Negri Sembilan.

Prime Minister Datuk Seri Najib Razak, who made the announcement yesterday, declined to elaborate but said that further details on the relocation would be given later.

Sendayan is about 15km from Seremban. There had been plans for the site to be made a Low-Cost Carrier Terminal (LCCT) for AirAsia, but the plans were shelved.

Najib was speaking to reporters after launching the Community Rehabilitation Centre in Kem Syed Sirajuddin here.

Air Force chief Tan Sri Rodzali Daud had earlier said the air force was prepared to relocate if the government wanted to turn the Sungai Besi base into a commercial hub.

He said if instructed to move, all assets, including the headquarters and aircraft which were at the base, would be moved to the Subang Air Force base, or any other suitable location.

"We have no objections, but hope the relocation will provide us with better and modern infrastructure."

The Sungai Besi air force base was the first airport in the country to be given international status on Aug 1, 1956, by the late Tunku Abdul Rahman, the nation's first prime minister.

Earlier in his speech, Najib said the government would enter into more "unique partnerships" in future with the aim of reducing manpower and costs, as well as maximising the use of existing assets to generate income.

He said it was time for the government to think creatively and find solutions for social, economical and political problems.

"We cannot think conventionally anymore. If in the past we wanted to reduce the crime rate, we would have immediately asked for an additional budget, increased manpower and more prisons.

"However, now under the Blue Ocean Strategy way of thinking, we need to find ways to reduce crime using the lowest budget possible. This is what we are doing today with our community rehabilitation centres being set up in army camps."

Najib said the cost of rehabilitating 300 prisoners at the camp was only RM7 million a year compared with caring for 400 prisoners in a jail which cost about RM50 million a year.

"The community rehabilitation centres are a clear example of how successful a 'unique partnership' can be. To make these centres work, the Home, Defence and Agriculture and Agro-based Industry ministries have to work together."

Najib said phase two of the programme would be extended to the rehabilitation of drug addicts and would involve the National Anti-Drug Agency.

The community rehabilitation centre at Kem Syed Sirajuddin is the second after the prime minister launched the first one at Kem Mahkota Kluang in Johor on March 26.

"During my walk around the camp, I spoke to six prisoners and their families and they were all thankful to the government for coming up with such a programme.

"Here, they are able to see their families regularly, learn new skills and even earn up to RM200 per month, compared with about RM30 per month in jail.

"He said the government would discuss with Tabung Ekonomi Kumpulan Usaha Niaga (Tekun) on the possibility of giving these prisoners a small loan to venture into the agriculture sector on their release.

In Muar, Defence Minister Datuk Seri Dr Ahmad Zahid Hamidi said Lembaga Tabung Angkatan Tentera and 1Malaysia Development Bhd were the developers of the new RMAF base in Sendayan.

"Once the Sendayan base is completed, the developers will turn the Sungai Besi base into a commercial hub, which will include low-cost housing for the lower-income group," Zahid told the media after officiating the Bakri Umno division meeting here yesterday. Also present was Bakri Umno chief Datuk Saipol Bahri Suib.

He said the developers would build all the facilities at the new base, which is as big as the Sungai Besi base, including the runway, control tower and hangars.

"We will only move into the new base once all the facilities and equipment are in place. The moving process is expected to take 60 months to complete," said Zahid.

Asked if the ministry had a deadline for the developers to complete the new base, he said the ministry had a timeline but declined to elaborate.

New airbase it is reportedly believed to be at Kota Warisan in Dengkil, near the Kuala Lumpur International Airport in Sepang (photo : Airplane Pictures).

KUALA LUMPUR: The new air force base, to replace the one at Sungai Besi, will primarily served as a training establishment.

Royal Malaysian Air Force chief Gen Tan Sri Rodzali Daud said the new base would house the numerous training facilities in the organisation 'under one roof' as a management and leadership centre, especially for non-commissioned officers.

"At the moment, our various training institutions, like the Air Force Specialty School in Tanjung Bungah, Penang, are scattered all over the country but soon, it will be centralised in one base.

"It will allow us to restructure our operations and relocate the air divisions and command headquarters to forward operational bases just like how the navy and army has done."

As part of the 'Air Force-Next Generation' strategy, Rodzali said the force would emphasise on courses in aero-mechanics, avionics, aerospace support equipment and information communications technology for the future generation of technically skilled personnel.

"Under our 'Engaging the Talent' mission, we want to nurture people with calibre and quality with skills in handling sophisticated equipment like digital avionics, as a way of keeping up with global challenges."

He declined to identify the exact location of the new air base, which will not have a runway, but it is reportedly believed to be at Kota Warisan in Dengkil, near the Kuala Lumpur International Airport in Sepang.

"Having a runway will not be feasible as the Klang Valley already has a congested airspace," he told a press conference held in conjunction with RMAF's 53rd anniversary on Wednesday.

He said the bunkered air defence operations centre at the Sungai Besi base would be relocated, possibly to the air force commando base in Bukit Jugra in Banting, while the helicopter squadrons to Subang, home to the RMAF's VVIP jets and helicopters, Hercules C-130s, maritime patrol squadrons and a national disaster air relief centre.

The 160ha Sungai Besi air base will make way for the multi-billion ringgit upscale Bandar Malaysia, undertaken by 1Malaysia Development Bhd (IMDB) via the Armed Forces Superannuation Fund.

Meanwhile, he said the RMAF's development plan included buying the muti-role combat aircraft, radars, sensors and the airborne early warning and control system.

The shopping list also include the F-16 Fighting Falcon and F/A-18E/F Super Hornets of the United States, Dassault Aviation's Rafael from France and the Saab JAS 39 Gripen from Sweden.

"We are looking at acquiring between 12 and 18 ultra-modern fighter jets per squadron, to replace the aging MiG-29N Fulcrums by 2015. Ideally, we want to operate not more than two types of fighters for ease of logistics, maintenance and the like."

Rodzali added the RMAF would take delivery of 12 Eurocopter EC-725 from next year, six Airbus A400M medium-lift aeroplanes were due for delivery from 2015."

In the meantime, at least 15 of our Nuri S-61 Sikorsky helicopters will be refurbished with upgraded avionics to complement the Eurocopters.

The first Airbus Military A330 MRTT new generation tanker/transport for the Royal Australian Air Force (RAAF) has left Madrid at 10h00 local time on its ferry flight to Australia.

Designated the KC-30A in RAAF service, the aircraft is scheduled to arrive at RAAF Base Amberley, Queensland on Monday 30 May, and to be formally handed over to the customer in the next few days.

On its ferry flight, the A330 MRTT is being flown by Airbus Military and RAAF crews, and will transit via McCarran (Nevada) and Hickam (Hawaii) in the USA.

The aircraft is the second converted by Qantas Defence Services in Brisbane, which was returned to Madrid for painting and finishing. It will be joined by the second aircraft for the RAAF in June, and two further aircraft later in the year. The fifth and final aircraft ordered by the RAAF, which arrived in Brisbane for conversion a few days ago, will be delivered next year.

The arrival of the aircraft at RAAF Amberley follows an extensive development and test programme for what is the world’s only certified and flying new generation tanker/transport aircraft. Civil Supplemental Type Certificate was obtained in March 2010, and the military certification in October.

In RAAF service the A330 MRTT will be equipped with two underwing refuelling pods, the fly-by-wire Airbus Military Aerial Refuelling Boom System (ARBS), and a Universal Aerial Refuelling Receptacle Slipway Installation (UARRSI) enabling it to be refuelled from another tanker. It is powered by two General Electric CF6-80E engines. It is equipped with a comprehensive defensive aids suite (DAS) and fitted with 270 passenger seats.

Indonesia has placed a $400 million order for 16 Korea Aerospace Industries T-50 Golden Eagle advanced jet trainers, the type's first export sale.The Indonesian Defense Ministry signed the deal on Wednesday, said Enes Park, executive vice president of KAI. The contract stipulates that the aircraft must be delivered 18 months after the signing of a loan agreement between the South Korean and Indonesian governments.

The announcement follows a 12 April letter the Indonesian government sent to KAI designating the South Korean firm as the preferred bidder to replace Indonesia's BAE Systems Hawk 53s. The letter all but sealed the fate of the T-50's rivals in the competition, the Aero Vodochody L-159 and Yakovlev Yak-130.

The 16 General Electric F404-powered aircraft will be produced at the KAI facilities in Sacheon, South Korea. They will shipped to Indonesia partially disassembled, where Indonesia state aircraft manufacturer PT Dirgantara Indonesia/Indonesian Aerospace (IAe) will reassemble them.

"The aircraft is certainly capable of being ferried, but transporting them meets Indonesian industrial regulations," says Park. "(Re-assembling) the aircraft will help them improve their capabilities."Despite the best efforts of KAI and the South Korean government, theT-50 lost trainer competitions in both the United Arab Emirates and Singapore to the Alenia Aermacchi M-346.

F/A-50 combat variant (photo : vehibase)

The T-50 will again square off against its rival in Israel and the USA. In 2012, the Israeli Air Force will decide between the T-50 and M-346 to replaces its Douglas A-4 Skyhawk trainers. In early May, Alenia Aermacchi general manager Alessandra Franzoni said America's T-X competition to replace the 1960s era Northrop T-38C will be a two horse race between the T-50 and M-346.

Park adds that there could be a possibility of selling Indonesia the T-50's combat variant, the F/A-50. "While there have been no concrete discussions on this, there is a distinct possibility of this in the future."

Indonesia is also still involved in South Korea's proposed KF-X programme, says Park. At the Farnborough air show in 2010, South Korea signed a memorandum of understanding with Indonesia, with the latter to potentially contribute up to 20% of the KF-X development costs. Indonesia is currently looking at how it might participate in the project.

The T-50 buy is just the latest example of Jakarta's efforts to upgrade the nation's air force. In November 2010, it purchased eight Embraer EMB-314 Super Tucano light attack aircraft to replace Vietnam War-era Rockwell OV-10 Broncos. In January 2011 it awarded Arinc Engineering Services a $66.7 million contract to modernise five Lockheed Martin C-130Bs.

Indonesia is also considering upgrading its 10 Lockheed Martin F-16A/B fighters. Media reports have said Jakarta will buy 24 ex-US Air Force F-16s, but this has not been officially announced by either Washington or Jakarta.

The Minister for Defence Stephen Smith and the Minister for Defence Materiel Jason Clare today announced the reallocation of construction work for the $8 billion Air Warfare Destroyer (AWD) Project.

Australia is constructing three AWDs based on a proven design from the Spanish Navy. The ships are due to be delivered from December 2014. When complete, the AWD will be one of the more capable types of warship of its size in the world.

The AWD Project is an important element of Force 2030. The Government and Defence have been actively working with Defence Industry and the AWD Alliance, which is managing the AWD project, to deliver the project. The AWD Alliance consists of ASC, the Defence Materiel Organisation (DMO) and Raytheon.

Construction of the AWDs involves 90 separate steel blocks being built at three shipyards in Adelaide (ASC), Melbourne (BAE Systems) and Newcastle (Forgacs). Three additional sonar block assemblies are being built in Spain and the United Kingdom.

The Melbourne BAE Systems shipyard is also building 14 steel blocks for the superstructure of two new 27,500 tonne Landing Helicopter Dock ships (LHDs) due for delivery in 2014 and 2015.

Last year the project encountered difficulties in relation to engineering and construction of some of the first AWD hull blocks. To assist the AWD project schedule, earlier this year the AWD Alliance reallocated construction of nine steel blocks from BAE Systems in Melbourne to the Forgacs shipyard in Newcastle.

The Melbourne BAE Systems shipyard remains stretched, working on two major projects at the same time – steel blocks for the Air Warfare Destroyers and the superstructure and integration of the Landing Helicopter Dock Ships.

The Government, the AWD Alliance and BAE Systems take the schedule for both these important projects extremely seriously.

In February 2011, BAE Systems advised the AWD Alliance of potential schedule delays. Over the last few months, the AWD Alliance and BAE Systems have been working closely to develop options to improve the production program.

In March, the Minister for Defence met with Guy Griffiths, the Group Managing Director - International of BAE Systems UK, in London to discuss this project.

The Minister for Defence Materiel has also met with the CEO of BAE Australia, Jim McDowell, on a number of occasions about this project.

Earlier this month BAE Systems presented the AWD Alliance with a plan to adjust its workload on the AWD Project.

The advice of the AWD Alliance is that if no action is taken to relieve the pressure on the Melbourne BAE Systems shipyard the first ship would be two years late, approximately 25 per cent over schedule.

The AWD Alliance (with the support of BAE Systems) therefore proposes to take the following action:

Up to 13 steel blocks will be reallocated among the three Australian shipyards in Adelaide, Melbourneand Newcastle – seven for advanced fit out and six for construction; andUp to five steel blocks will be reallocated to Navantia in Ferrol, Spain.

These changes involve the reallocation of blocks for the first two ships only and are subject in the usual way to satisfactory commercial arrangements with the shipyards.

BAE will complete the structural steel and initial outfitting work on the seven steel blocks it is currently working on, as well as all its work on the 14 blocks for the superstructure of the Landing Helicopter Dock Ships and the integration work.

A decision on the reallocation of blocks, if any, on the third AWD will be made later in the project.

This action will reduce the schedule risk to both this project and to the LHD ships project.

The AWD Alliance has advised that this action will reduce the delay of the completion of Ship 1 by up to 12 months, and of all three AWDs by up to 12 months.

It will also reduce the pressure on BAE Systems to complete the construction of the superstructure and the integration of Australia’s two new LHD ships.

Defence will plan its comprehensive options to manage the transition from the current Adelaide Class frigates to the AWDs taking into account the agreed reallocation of blocks.

Indonesia recently test-fired a Russian-made anti-ship missile, the Yakhont, in the Indian Ocean. There are fears that the modernising of armed forces across Southeast Asia may lead to an arms race.

There is no denying that a major upgrading of the defensive capabilities of Asean member countries is overdue, and that there is no reason to worry if and when any do so.

After all, we cannot expect Asean member countries to deal with present-day non-conventional security concerns, such as human trafficking, smuggling and piracy, while their armed forces are equipped with weapons so obsolete as to make pitchforks and parang a security threat.

There is, however, some cause for concern when the upgrading of the defensive capabilities of some countries lends the impression that the new weapons technologies that are being purchased may also be used for more belligerent intentions; and even more worrisome when there is the threat that such weapons technologies may fall into the wrong hands.

Furthermore, it has to be added that for most Asean member countries, the pressing needs of development have to come first: across both maritime and mainland Southeast Asia, there remains the dire need for better communication, transport infrastructure, schools and other educational facilities as well as the provision of healthcare -- all of which contribute to the sum total of a nation's social and material development. Nuclear weapons are not much use for countries where illiteracy remains a problem, it can be argued.

How then should the nations of Asean proceed in terms of the upgrading of their armed forces? Asean's formation in the 1960s was meant to serve as an instrument for the prevention of war: to prevent the Cold War from spilling into the region, and to prevent war from erupting between the member states. Thus far, Asean, along with the European Union, can claim some credit for being able to hold off the threat of both.

However, as the Asean member states continue to develop according to their own pace and trajectory, there is the need to ensure that communication between them remains at an optimum, real-time level. This has to be so in order to ward off any untoward incidents and concerns that might arise when one country suddenly ups the ante by acquiring a new weapon system that radically tips the balance of power in favour of it, at the expense of others.

It is in this light that we need to consider Indonesia's latest testing of its Yakhont anti-ship missile, which was launched in the Indian Ocean recently. The successful test-firing of the Russian-made missile marks a significant development in the military potential of Indonesia.

The anti-ship missile has a range of around 300km and flies at Mach 2.5, more than twice the speed of sound.

Vietnam, likewise, has the same missile capabilities, but its anti-ship missiles are based in land installations, rendering them useful for only defensive operations.

Over the past few years, other countries in Asean have beefed up their anti-ship missile capabilities: Malaysia has introduced underwater-launched anti-ship missiles in the Scorpene submarines.

The concern of some security analysts, however, is that these new arms purchases may inadvertently contribute to an arms race of sorts in Southeast Asia, and thereby decrease, rather than increase, Asean's role as a peacekeeping arrangement between its member states.

Furthermore, one has to wonder how anti-ship missiles contribute to the safety of our territorial waters where -- in some regions -- the threat of piracy, smuggling and human trafficking seem to be the real problems that need to be resolved. Are the naval forces of Asean going to stop the smuggling of pirated DVDs by launching million-dollar missiles in the future?

Countries like Indonesia do indeed need to upgrade and even expand their armed forces for reasons that ought to be clear to anyone with a grasp of arithmetic: it would be impossible for the armed forces of Indonesia to maintain security in an archipelago of 14,000 islands stretched across an area the size of Europe unless it has a bigger army that is professional and well-equipped.

But this also means purchasing less glamorous equipment like transport ships, coastal patrol boats, observation aircraft, and, of course, improving the salary, training and level of professionalism of the ordinary soldiers themselves.

Such stuff may not be to the liking of fans of Rambo and other gory war flicks, but the bottom line is that the running of a professional army is akin to the running of a well-organised company: the accounts have to be in order, logistics have to be accounted for, supplies have to be regular, and professionalism has to prevail always.

For the sake of the communities of Asean, whose combined population now stands on a par with Europe at well above 300 million, policymakers in the region need to remain lucid and cognisant of these simple economic facts.

Asean does need security and safety, but it does not need an arms race.

After 17 years of dedicated service, the Royal Australian Navy’s amphibious transport ship, HMASManoora, was decommissioned at her homeport of Garden Island, in Sydney, today.

Following a time honoured tradition, the Australian White Ensign was lowered for the last time and handed to Commanding Officer, Commander Stephen Dryden, RAN.

Commander Dryden said Decommissioning the vessel was a bitter sweet moment.

“It is always sad to farewell a ship like Manoora, which has provided significant amphibious capability to the Australian Defence Force over her many years of service,” said Commander Dryden.

“Manoora has proven herself to be versatile and resilient, supporting humanitarian aid and disaster missions in the Solomon Islands and East Timor and undertaking active service in the Middle East as part of Operations Slipper and Falconer.”

“Her hard work has paved the way for the future of the Navy by providing an understanding of how to carry out amphibious and expeditionary warfare,” said Commander Dryden.

“Today it is also important to acknowledge the hard work of the current and former crews who have calledManoora home. Their dedication has enabled the platform to respond to situations in war and peace, whenever tasked by Government to do so.”

Manoora is a helicopter capable amphibious transport ship with a 40 bed hospital, which has seen an army contingent embedded as part of her crew.

26 Mei 2011

WELLINGTON - New Zealand's defense budget will increase by a nominal 2 percent for the 2011-2012 fiscal year, rising to 2.9 billion NZ dollars, according to figures released by the government.The budget, announced May 19, continues to give the largest slice of the New Zealand Defence Force's dollars to the Army, although for the second year in succession, the Army's share has shrunk - from 843 million NZ dollars last year to 832 million, including more than 380 million NZ dollars for land combat forces.

The Army's loss is arguably the Navy's gain, as their budget has increased by 20 million NZ dollars to almost 693 million NZ dollars.

The service's two Anzac-class frigates continue to be the military's most expensive assets, accounting for more than half of the Navy's budget - 408 million NZ dollars.

Also enjoying a budget boost, for the third year in a row, is the Air Force, with 670 million NZ dollars. The service's fixed-wing transport fleet of five C-130H Hercules and two Boeing 757s accounts for almost 40 percent of its budget. The Air Force's six P-3 Orions, being upgraded to P-3K2 status, account for 25 percent.

However, the NZDF's operational budget is down from 78 million to 71 million NZ dollars.

The budget for the Secret Intelligence Service has dropped slightly, and what is described as "communications security and intelligence," which likely includes the Government Communications Security Bureau with more than 300 staff, will have to manage with a significant cut in its funding from 74 NZ million dollars to 56 NZ million dollars.

On April 12, Indonesia selected KAI as the preferred bidder for its trainer jet program over Russian’s Yakovlev Yak-130 and the Czech Republic’s Aero Vodochody L-159, the two other finalists in the competition.

Italy’s M-346, which defeated the T-50 in trainer jet acquisition deals in the United Arab Emirates in 2009 and Singapore in 2010, was disqualified from the competition in the first round of assessments in May last year.

The export of the T-50 was briefly thrown into question when Korean intelligence officials allegedly broke into the hotel room of a visiting Indonesian delegation in Seoul on Feb. 16.

Observers say that the deal will have positive effects on the country's efforts to export the aircraft to other nations, including Israel, the United States, Poland, India and the United Arab Emirates.

They say the strategic importance and close bilateral ties between Korea and Indonesia played a role in the decision-making process.

Indonesia and Korea are working together to jointly develop a new fighter.

25 Mei 2011

The project involves the purchase of 264,662 rounds of 5.56 mm ammunition for the General Headquarters and 1,620,204 rounds for the Army. (photo : ATK)

MANILA, Philippines - The military will acquire about P36 million worth of ammunition from Minneapolis-based firm ATK.The purchase will be made through the Philippine International Trading Corp. (PITC).

Military and PITC officials are scheduled to fly to the US on June 15 to conduct a pre-delivery inspection at the ATK’s plant in Missouri.

“The items will be inspected to see if these comply with the technical specifications provided by the military,” Myra Alvarez, PITC vice president for military accounts, said in a phone interview.

The project involves the purchase of 264,662 rounds of 5.56 mm ammunition for the General Headquarters and 1,620,204 rounds for the Army.

The bidding for the project was conducted last February.

“Our troops will have enough ammunition to perform their duty. This can definitely help us protect the public from security threats,” Maj. Harold Cabunoc, acting Army spokesman, said of the purchase.

Alvarez gave assurance that transparency would be observed in the purchase of the ammunition.

“Our mandate is to ensure the efficient procurement for the government. We always see to it that everything is transparent and cost-efficient. We always comply with the procurement law,” he said.Alvarez said the PITC, which is attached to the Trade and Industry department, has been helping the military purchase its needed supplies since 2003. Initially, the state-run firm helped the military buy medicines for its personnel.

Alvarez said the PITC started helping the armed forces purchase ammunition in 2007.

Equipment upgradeMeanwhile, the military has also embarked on a 5 billion project to beef up its equipment and upgrade its capability.

Six of the projects will benefit the Navy, while four are intended for the Air Force, and two for the Army. One will benefit the General Headquarters WideService Support Units.

The projects include the delivery of a one-ton troop carrier, a two-ton troop and cargo carrier, as well as the upgrade of Jacinto class patrol vessel. Also part of the project is the upgrade of MD520 helicopters.

24 Mei 2011

ISTANBUL - Turkey's flourishing armored vehicle makers increasingly are investing in the development and production of eight- and six-wheel-drive tactical vehicles, mainly for export.

"The Turkish armed forces are not scheduled to buy eight-by-eight vehicles anytime soon, but there's a huge interest by the world militaries to buy such vehicles," said Serdar Gorguc, general manager of vehicle maker Otokar. "So that's why we have developed our Arma vehicle." Gorguc spoke in early May, when Otokar unveiled its amphibious eight-wheel-drive Arma."In the next 10 years, there will be a huge market in the world for eight-by-eight vehicles, and we are seeking cost-effective and good solutions to all requirements," Gorguc said. "All countries not producing eight-by-eight vehicles are our potential customers."

The Turkish military's potential purchase of a large number of six-wheel-drive tactical armored vehicles has been on hold since last year, but this has not deterred local vehicle firms from pursuing development. At least three Turkish vehicle makers have begun developing and making six-wheel-drive vehicles.

Otokar has already produced a six-wheel version of the Arma. The company signed a $10 million contract to sell 13 of these to a Middle Eastern country, which Otokar officials declined to name.

The 13 vehicles represented different models of the six-wheel Arma designed for varied missions, and if they operate successfully, the company expects to export 100 more vehicles to that country.

The eight-wheel-drive Arma was exhibited for the first time at the International Defense Industry Fair (IDEF) 2011 here May 10-13. Both Arma versions will compete with rivals for contracts in at least two countries over the next couple of months, company officials said.

"The Arma is a modular system, so once you have the six-by-six vehicle, you can easily design the eight-by-eight version with some few additions," Gorguc said.

Otokar, based at Adapazari and owned by Turkey's top business conglomerate, Koc Holding, makes seven armored vehicles. Its sales, civilian and military, were about $340 million in 2010.

Company officials said the Arma has a high degree of ballistic and mine protection, thanks to its high steel hull. But Otokar's signature product is the Cobra, a four-wheel-drive tactical armored vehicle exported to nearly 10 countries in the Balkans, the Middle East and Southeast Asia since the mid-1990s.

Otokar also is the Turkish prime contractor for a multibillion-dollar program for the design, development and manufacturing of Turkey's first domestically produced main battle tank, the Altay.

Under a $500 million contract, Otokar and its partners will deliver four prototypes for the new-generation tank by 2015. Otokar is obtaining technology transfer from South Korea's Hyundai Rotem, which produced South Korea's K1 and K2 main battle tanks. Serial production of the Altay is expected to start after 2015. Otokar exhibited a mockup at IDEF 2011.

In terms of exports, Turkey's most successful vehicle maker is FNSS, a joint venture between Turkey's Nurol Machinery and Industry and the U.S.-based BAE Systems Land and Armaments. Nurol holds the majority stake.

The land warfare sector accounts for Turkey's largest defense export deal: a $600 million sale of 257 Pars eight-wheel-drive armored personnel carriers and combat vehicles from FNSS to Malaysia, signed in February. The vehicles will be co-produced with Malaysian partners.

FNSS is discussing another sale of the Pars to Indonesia. The company also is near a deal with the arms company Al Jaber in the United Arab Emirates, FNSS officials said. FNSS and Al Jaber are expected to jointly build the Pars vehicles in the emirates.

Building on the success of the Pars eight-wheel, FNSS has developed a six-wheeled version that it hopes to export. FNSS displayed the six-wheel Pars at IDEF.

"The international success of the Pars proves that a Turkish vehicle maker can be very successful even without selling its products to the Turkish Army," an FNSS official said. "There is and there will be a huge interest in the world militaries for the six-by-six and eight-by-eight vehicles."

Nurol Machinery and Industry also has its own independent wheeled armored vehicle company, which produces the six-wheel-drive Ejder.

"The six-by-six tactical vehicles have a bright future in the world, so that's why we're working in this field," said Evren Sesal, a research and development engineer at Nurol. Another company official said the six-wheel Ejder has been exported but did not specify the buyers.

Turkey's thriving local defense industry reported a growth rate of 19 percent in 2010, confirming analysts' expectations of "fast and sustainable growth" in the years ahead.

"The Turkish defense industry's total revenue amounted to $2.773 billion in 2010, up from $2.319 billion in 2009. This is a robust growth," said a late April report released by the Defense Industry Manufacturers' Association (SaSaD), an umbrella organization of Turkish defense companies.

However, the Turkish industry reported a 5 percent decline in exports at $634 million last year, down from $669 million the previous year. "The slight drop in exports reflects the continuing effects in 2010 of the global financial crisis," SaSaD said.

More than half of the exports from last year came from the armored vehicle makers' sales, SaSaD officials said.

SaSaD's export figures are different from those of the Undersecretariat for Defense Industries (SSM), the government's defense procurement agency. The SSM officially counts civilian aviation exports related to the defense contracts, known as offsets, as part of defense exports, but SaSaD only counts direct defense sales abroad.

"The decrease in exports is a temporary trend because from early figures this year, we see a major increase in foreign sales," one SaSaD official said. The official figures for 2011 will be available in 2012.

But a senior SSM official said that the 2011 export figures would reach more than $1 billion.

The new ship to replace the navy's ageing tanker, Endeavour, could have some serious weaponry to fight off pirates. The 23-year-old Endeavour will be replaced with a new ship in 2018 at a cost of about $250 million.Navy planners looking at the best ship to order said the new ship would at the least have .50-calibre machine guns and other measures to ward off pirates.

Endeavour was built on a commercial tanker design in Korea and modified for the navy as a fleet replenishment ship, which could refuel other ships at sea, carry stores and operate a helicopter.

However, it had no weapons on board other than 5.56mm Steyr assault rifles and pistols. The navy said it was looking at following global trends to give the new ship the ability to fight off pirates.

Commander Tony Hayes, the navy officer in charge of the acquisition programme, said as well as .50-calibre machine guns, they were also looking at a deck layout which would allow a mounting for a rapid-fire Phalanx Gatling gun similar to those fitted to the Anzac frigates, Te Kaha and Te Mana.

The 20mm, radar guided, close-in weapons system is used to ward off missile attacks, strike aircraft and fast inshore attack boats and could fire up to 4500 rounds a minute.

''We would consider in the design placement for such a thing. If you look at what the other major navies are doing, they are considering self defence weapons on these types of ships.''

Cdr Hayes said as more navies opted for more multi-role ships, including ships like HMNZS Canterbury and the Endeavour replacement, they did not have as many warships.

''These multi-role vessels are having to do more jobs and independently.''

''We would want appropriate anti-piracy measures.

Anti-piracy measures could include high pressure water systems, barbed wire and ''all sorts of attachments you will see on a lot of the major oil tankers.

''It is to physically to stop people climbing or putting grappling irons on the sides of ships.''

Endeavour will become non-compliant with International Maritime Organisation requirements in 2013 and be reclassified, with its cargo volume reduced.

Two years ago the navy spent about $2m closing off some of the tanks to effectively give it a double hull, reducing the capacity by 25 percent to about 5500 tonnes of fuel. From 2013 it would be limited to 5000 tonnes of fuel.

The replacement ship was likely to be more versatile than Endeavour but it would retain its main function as a fleet tanker.

''If budget permits and the base design permits we would like to see it with additional craneage, the ability to take a lot more containers and maybe support amphibious operations too.''

The ship would also be able to land the air force's new NH 90 helicopters and the navy's Seasprite helicopters and carry limited numbers of troops.

THE Armed Forces of the Philippines (AFP) is seriously considering the acquisition of two more modern large Hamilton-class patrol crafts to shore up its naval defense capabilities and aptly defend the country’s 200-mile exclusive zone from foreign intruders, particularly in the disputed Spratly group of islands in the South China Sea.

The AFP spokesman, Commodore Juan Miguel Rodriguez, disclosed yesterday that the plan had already been discussed by top military officials even as formal communications have yet to be made to the President and as well as to the US government, which is offering the Hamiltons to the world market.

“I’m sure that it has already been discussed. The United States is offering the Hamiltons there in the world market,” Rodriguez said.

As far as Malacanang is concerned, Rodriguez expressed confidence that the President would give his support to the plan of the AFP.

He added that while the AFP has to compete with other interested bidders, the Philippines would most likely get it has already acquired the first Hamilton that the US Navy has put on sale.

“There is a bigger chance that they would be given to us,” Rodriguez said.

Maintenance wise, Rodriguez explained that it become much stronger and economical when the Navy have two or three of them.

“Because if you have different ships you have logistical nightmare in terms of supplies, etcetera. So the commonality of spares will dictate by pure logic that if you did three or four ships, it’s best if you hav the same types,” he added.

Rodriguez also pointed out that the Philippine-US relations would also be a factor in the acquisition of additional Hamiltons, saying that “as mutual defense treaty partners, I would believe that hey would give a preference to their treaty partners.”

The first Hamilton has already been turned over by the US Coast Guard to the Philippine representatives in simple ceremonies held at Coast Guard Island, Alameda, California last May 13 and would be due for arrival on August.

A step towards the Vessel’s commissioning here in the country, the official name of the U.S. Coast Guard Cutter Hamilton was changed Friday to “Ex-Hamilton” with Philippine Ambassador to the

Transfer cost was pegged at P450M, while operational cost for two years is estimated at P120 million.

Funding will come from the Department of Energy (DOE) considering that the vessel is projected to be employed for the security of oil platforms and oil explorations activities in Palawan and Sulu Sea.

The Filipino crew of the first Hamilton has by far been on training since February this year in the U.S which will last until June 30 prior to installation of a Coast Watch System equipment in July.

23 Mei 2011

By November this year, the Philippine Air Force will take into service four brand new Sokol medium transport helicopters from Poland (photo : Jetphotos)

MANILA, Philippines - Four of the seven combat utility helicopters (CUH) worth P3.2 billion are due for delivery to the Philippine Air Force (PAF) on November this year, Armed Forces chief Gen. Eduardo Oban Jr. announced Thursday.

The acquisition project was started during the previous administration as part of the Armed Forces’ modernization program to boost the aerial capability in support of the internal security operations (ISO).

The first delivery is worth P2,875,864,625.18 and supplied by Swidnik based in Poland.

Also due for delivery completion is the acquisition of 18 SF260 trainer planes worth P621,671,409.60 supplied by the Italian Aermacchi company; the upgrade completion of the MD520 MG units worth P240,000,000 and the delivery of aerial camera worth P50,985,000.

For the Navy, due for upgrade completion is one unit of British-made Peacock under the Jacinto Class Patrol Vessel project worth P353,650,000.

South Korea is also expected to deliver the Chamsuri (PKM) class gunboat worth P279,971,196 and also the delivery of the Landing Craft Utility worth P178,930,000, the configuration of Radio 20W worth P231,000,163, truck 2 ¼ ton troop carrier, and truck 1 ¼ ton troop carrier.

For the Army, the service is expecting the delivery completion of a night fighting system worth P341,497,215.50 and CMO Audio/Visual System worth P37,889,316.

“What I can say is for 2011 we will be able to enhance our capability particularly in patrolling our territorial waters,” Oban said.

On top of these deliveries, the Navy is also expecting the arrival of one unit of US Coast Guard Hamilton-class cutter by August. The vessel is worth around P1.2 to P1.5 billion.

Hamilton vessels have been phased out from the inventory of the US Coast guard.